Sake Market Size, Trends and Growth Analysis by 2027

The global sake market was valued at approximately US$ 9,290.16 million in 2019 and is anticipated to reach around US$ 13,146.68 million by 2027, reflecting a compound annual growth rate (CAGR) of 4.7% from 2020 to 2027.

Sake, often referred to as Japanese rice wine, is an alcoholic beverage produced through the fermentation of polished rice, where the bran has been removed. Unlike traditional wines, which derive their alcohol from the natural sugars found in fruits (primarily grapes), sake is created through a brewing process similar to that of beer. In this method, starches are converted into sugars, which then ferment into alcohol. The brewing of sake is distinct from beer brewing, as the conversion of starch to sugar and sugar to alcohol occurs simultaneously, rather than in separate stages. In Japan, sake is traditionally served in a ceremonial manner, often warmed in a small earthenware or porcelain vessel and enjoyed from a small porcelain cup known as a sakazuki. The alcohol by volume (ABV) of undiluted sake typically ranges from 18% to 20%, while diluted sake has an ABV of about 15%.

The sake market is categorized into three segments based on quality: premium, medium, and low. In 2019, the low segment held the largest market share, while the premium segment is projected to experience the fastest growth rate from 2019 to 2027. Currently, approximately 70% to 80% of sake produced is classified as non-premium or low-priced Futsushu, commonly referred to as regular 'table sake' or Sanzoshu. The term Sanzoshu, or triple sake, indicates the threefold increase in yield that can be achieved by adding raw ethanol, appealing to cost-conscious brewers. These types of sake are typically produced for maximum yield and value, utilizing lower-grade rice that is polished less than 30% and brewed with significant amounts of distilled alcohol and sometimes additional additives. The increasing incorporation of ordinary sake into culinary applications, particularly within the foodservice sector, is expected to drive growth in this segment. Additionally, the rising appreciation for Japanese cuisine and the trend of pairing various dishes with sake are likely to enhance the demand for lower-grade sake during the forecast period.

Geographically, the global sake market is divided into several regions: North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. In 2019, North America held the largest share of the global market, followed by Europe and Asia-Pacific. The United States is the leading market for sake in North America, with Canada and Mexico also contributing to the market. Numerous sake breweries have established a strong presence in North America, including notable players such as Takara Sake USA Inc., Gekkeikan Sake, and Ozeki Sake. These breweries are actively engaged in innovating and developing diverse sake varieties with enhanced flavors and qualities to attract new consumers and expand their market reach. The export of sake to various countries in North America is expected to further boost demand in the region, alongside innovative marketing initiatives aimed at promoting sake across North America.

The COVID-19 pandemic, which originated in Wuhan, China, in December 2019, has rapidly spread worldwide. By August 2020, countries such as the US, Russia, India, Brazil, Mexico, and South Africa were among the hardest hit in terms of confirmed cases and fatalities. According to the World Health Organization (WHO), as of September 2020, there were approximately 29,444,198 confirmed cases and around 931,321 deaths reported globally. The pandemic has severely impacted economies and industries due to lockdowns, travel restrictions, and business closures. The food and beverage processing sector, a significant global industry, has faced substantial disruptions, including supply chain interruptions, cancellations of technology events, and office closures. Although China is a major manufacturing hub and the largest supplier of raw materials for various industries, it has also been significantly affected by the pandemic. The lockdown of numerous factories in China has disrupted global supply chains, negatively impacting the production and sales of various sake types. The overall market downturn due to COVID-19 has also hindered the growth of the sake market, resulting from factory closures, supply chain challenges, and a global economic slowdown.

Key players in the global sake market include Aramasa Co., Ltd., Asahishuzo CO., Ltd., Blue Current Brewery, Gekkeikan Sake Co., Ltd., Hakutsuru Sake Brewing Co., Ltd., Kanpai London Craft Sake, Ozeki Corporation, Sun Masamune Pty Limited, Takara Sake USA Inc., and Tatsuuma-Honke Brewing Co., Ltd..

The overall size of the global sake market has been determined through a combination of primary and secondary research methods. The research process begins with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the global sake market. Additionally, multiple primary interviews are conducted with industry participants and experts to validate and analyze the collected data. Participants in this process include industry professionals such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants, including valuation experts, research analysts, and key opinion leaders specializing in the global sake market.